Sydney, February 22, 2016 – In Q4 2015, the Australian Technical Consumer Goods (TCG) market recorded its strongest growth of the year with value sales up by 11.8%, compared to Q4 2014. With all four quarters consistently outperforming the previous year, the TCG market in 2015 reached AUD19.3 billion – the highest-ever annual value spend reported by GfK TEMAX® Australia.
Despite uncertainties surrounding the global financial market and the Chinese economy, record low interest rates and stronger than expected employment supported growth in household consumption. Inflation, at just 1.7% in 2015, is expected to remain low, suggesting that the current state of low interest rates and moderate economic growth will continue – at least into the near future.
The key drivers of the TCG market in 2015 – Telecommunications (TC), Major Domestic Appliances (MDA), and Small Domestic Appliances (SDA) – performed particularly well again in the fourth quarter. Indeed, all sectors tracked in GfK TEMAX® Australia recorded value growth in Q4 2015.
Telecommunications: Christmas boost for prepaid smartphones and wearables
The TC sector was both the largest, and the fastest-growing sector in both Q4 (up by 25%), and for the whole of 2015 (up by 22%). Accounting for 31% of all value sales within the TCG market, the key components of this growth were prepaid smartphones, and a successful Christmas period for the wearables segment.
Within the prepaid smartphones segment, 19% of the total annual volume occurred in the final six weeks of the year. In Q4 2015, sales of prepaid smartphones increased by 42%. This was fueled by pricing promotions during the key Christmas period, with overall price falls of 10%, compared to Q4 2014.
During the same period, the heavy retailer focus on wearables led to value growth of over 100%. The introduction of more premium smartwatch devices had a very positive impact on the overall value of this popular segment.
Major Domestic Appliances: value growth across the board
2015 was a very strong year for the MDA sector with a sales uplift of 9%, compared to 2014. In Q4 2015, all segments generated sales growth, including freezers, which had shown relatively weak demand in recent years.
Washing and laundry segments performed particularly strongly, experiencing double-digit annual growth. This result was driven by the demand for larger capacities and higher-priced segments, such as front-loading washers, and heat-pump dryers. Despite the weaker Australian dollar, the average selling price of heat-pump models fell in the last quarter of 2015, as the market matured and the competition intensified. However, the average price remained at three times the level than that for the overall dryers segment.
Small Domestic Appliances: healthy summer lifestyle choices
The SDA sector continued its strong performance in Q4 2015 with growth of 8%, compared to Q4 2014. Improving by 11.2%, compared to the whole of 2014, the SDA sector was the second-best annual performer, after Telecommunications.
Throughout the year and also in Q4 2015, vacuum cleaners and food preparation equipment were the main growth categories. Also, the popularity of high-end personal blenders continued to dominate the Christmas period.
In Q4, growth was also registered in the electric cooking pots category, in particular multi-cookers which are popular for their versatile usage in the kitchen. In the personal care products segment, hair clippers saw much stronger value growth – up by 39%, compared to Q4 2014 – due to a shift towards higher-priced, premium-branded models.
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GfK TEMAX® is an index developed by GfK to track the technical consumer goods markets. The findings are based on surveys carried out on a regular basis by the retail panel of GfK. The retail panel comprises data from over 425,000 retail outlets worldwide. Since February 2009, GfK has also been compiling the GfK TEMAX® index at international level in more than 30 countries. It is the first index that includes all of the markets for technical consumer goods in different countries. All reports and press releases are available at www.gfktemax.com. If information from this press release or www.gfktemax.com is cited, GfK TEMAX® should be explicitly indicated as the source.
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